The DepoPont formula defines the net return on shareholders' equity as a function of the following components:

Operating margin ,Asset tunover, Interest burden, Financial leverage, and Income tax.

a. Calculate each of the five listed above for 2010 and 2014, and calculate the return on equity for 2010 and 2014, using all of the five components. Show calculation.

b. Brietly discuss the impact of the changes in asset turnover and financial leverage on the change in roe FROM 2010 TO 2014.

INCOME STATEMENT DATA 2010 2014

Revenues 542 979

Operating income 38 76

Depreciation and amortization 3 9

Interest expense 3 0

Pretax income 32 67

Income Taxes 13 37

Net income after tax 19 30